Joining forces for e-commerce: How small African firms succeed with collaborative business models

Micro, small and medium-sized enterprises in Africa can tackle e-commerce barriers such as formalization, e-payments and delivery by joining forces through collaborative business models. This paper examines the pros and cons of three models – associations, consortiums and cooperatives – and finds that cooperatives are the most suitable to connect small African firms to cross-border e-commerce.

By working together, these companies can pool their resources, address competition issues and jointly develop new market opportunities online. Governments have a vital role to play by ensuring that business-friendly conditions are in place to enable the private sector to capitalize on these opportunities.